iRobot Investor Sues Over Viability With Amazon Deal Dashed (1)

iRobot Corp. overstated its profitability turnaround after Amazon Inc.‘s plans to acquire it fell through, leading to a record stock drop when the robot vacuum maker said there was substantial doubt about its ability to stay in business, a proposed class action said.

iRobot said it might not survive the next year while reporting disappointing fourth quarter and full year 2024 financial results on March 12, 2025, said an investor’s complaint filed in the US District Court for the Southern District of New York on Monday.

Share prices plummeted almost 36% that day—the stock’s biggest single-day plunge since iRobot’s ...